How to measure ROI of Digital Marketing Activities?

Calculating the ROI in Digital Media Marketing can be challenging, especially for companies that engage in B2B services and those which do not directly engage in selling products online. However, it is important for the marketers to calculate the ROI as today, a substantial portion of the budget is allocated for this purpose. Following are the metrics that can be broadly used in order to measure the ROI of Digital Marketing Activities:

  1. Unique Monthly Visitors (paid, organic, social, etc.)

  2. Cost per lead (determines the profitability of the marketing)

  3. Cost per acquisition

  4. Returns on ad spending (revenue calculation)

  5. Average order value (determines the value of a customer at each instance)

  6. Customer Lifetime Value Analysis (determines the affordability of ad spend according to purchases by the customer)

  7. Lead to close ratio (Number of customers that you close after generating a lead)

  8. Branded Search Lift (increase in the awareness of the customers about the brand)